Dive Brief:
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Researchers have found optimism among apparel sourcing executives despite great concerns about rising costs, increased competition, increased regulations, global risks, and social responsibility efforts. That comes in the first-ever benchmark study by the United States Fashion Industry Association (USFIA), formerly the United States Association of Importers of Textiles & Apparel (USA-ITA).
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The research for USFIA was led by Sheng Lu, a professor at the University of Rhode Island’s Department of Textiles, Fashion Merchandising and Design.
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While retail executives are concerned about rising costs, most (78%) expect only moderate increases this year, with just 3.7% expecting “substantial increases.” Trade barriers remain a concern despite advances in Free Trade Agreements.
Dive Insight:
With price concerns among consumers remaining strong, apparel retailers continue to struggle to source their wares in a way that allows them to be competitive, while also meeting rising costs associated with manufacturing and shipping. This includes increased wages in Asia, where apparel will likely be sourced for the most part for the foreseeable future.
While many retail executives say they are interested in diversifying their sources, the report found that there is little movement to move operations outside Asia to Africa or the U.S. In fact, in an op-ed for Business of Fashion, Sourcing Journal founder/publisher Edward Hertzman says that economic reality will limit retailers’ ability to significantly revive the American apparel industry.